#AskTheTaxWhiz: I missed the ITR filing deadline! What do I do next?

I missed the income tax return (ITR) filing deadline on April 15! Can I still file my ITR? Are the penalties going to be imposed immediately?

Yes, but for late filing, you are already penalized with a 25% surcharge penalty, 12% interest penalty, and the applicable compromise penalty.

That does not mean there is no incentive for filing immediately after. The interest penalty is imposed per day. As such, even filing immediately after the deadline could save you from paying more. The more you wait, the more your penalties grow. (READ: #AskTheTaxWhiz: Income tax return for employees)

Fortunately, under the Tax Reform for Acceleration and Inclusion law, delinquency and deficiency interest penalties can no longer be imposed at the same time.

Here is a sample computation from Bureau of Internal Revenue (BIR) Revenue Regulations (RR) No. 21-2018:

The BIR recently issued the implementing rules and regulations for the Tax Amnesty Act. Can I avail it if I fail to file the ITR this year?

No. Under RR 4-2019, only delinquent accounts are covered. Delinquent accounts are defined as:

What's more, the tax amnesty covers only the cases from taxable year 2017 and prior. Considering that the ITRs filed this year cover the taxable year 2018, the amnesty would not have covered it anyway.

Penalties are imposed whether the violation is an honest mistake or intentional. For honest mistakes, these penalties could be avoided by knowing about the right forms, rates, filing and payment methods, and deadlines beforehand. This information can be gathered by attending tax briefings, tax coaching sessions, or various tax seminars.

If you have more questions about taxes or have other tax-related questions, you can contact us at consult@acg.ph or (02) 622-7720. – Rappler.com

Mon Abrea, popularly known as the Philippine Tax Whiz, is one of the 2017 Outstanding Persons of the World, a Move Awards 2016 Digital Mover, one of the 2015 The Outstanding Young Men of the Philippines (TOYM), an Asia CEO Young Leader of the Year, and founding president of the Asian Consulting Group (ACG) as well as the Center for Strategic Reforms of the Philippines (CSR Philippines). Assisting him in his column is JM Miñano, communications associate of ACG. He graduated with a bachelor's degree in Communication Arts from the University of the Philippines Los Baños.

For inquiries, you may email consult@acg.ph or visit www.acg.ph for tax-related concerns.